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Real-Time Datamoshing in Unreal Looks Mesmerizing - Jam2go (YouTube)
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His comment at 7:07 about how "it makes it look like these objects can't be perceived" is exactly the context that struck me. It begs for a Cthulhu-esque encounter of some type. Remedy could make masterful use of this in the next Control game, for instance.
Neat about the first music videos to do it, too. I only remembered seeing it in OKGO and Watsy videos.
/edit: Of course he goes on to mention Control. It's a good fit.